Tag Archives: reputation

Janice Buchanon, Steritech
FST Soapbox

Is Food Safety Part of Your Crisis Management Plan?

By Janice Buchanon
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Janice Buchanon, Steritech

Unless you’ve been living under a rock, it’s been hard to miss the food safety-related headlines of the past month: E. coli in romaine lettuce, Salmonella-tainted eggs, norovirus-infected oysters sickening hundreds, and hepatitis A crises across several states, to name just a few. Since 1993 when an E. coli outbreak linked to ground beef at a fast food chain resulted in the deaths of several children, food safety has been on the radar of most major foodservice groups. Yet, surprisingly, food safety often doesn’t have its own crisis management plan within organizations.

A Single Food Safety Crisis Can Ripple Across Your Operation

A food safety crisis can have tremendous impacts on an organization, leading to lost sales, negative media and social media publicity, unsavory online reviews, temporary restaurant closure, lost wages for your staff, increased scrutiny on other locations, lawsuits and more.

In a 2016 survey of more than 500 consumers, it was revealed that food safety incidents stick with consumers—and that can impact your reputation and your bottom line for much longer than you may realize.

  • Of the respondents, 62.5% said they were aware of a food safety incident at a restaurant in the last six months.
  • A foodborne illness outbreak isolated to a single location of a chain restaurant would prevent many of the survey respondents from dining at other locations in the chain; 34.1% of respondents said that if they knew about an outbreak at a single location, they’d avoid eating at other restaurants in the chain for more than six months. Worse, 17% said they’d never eat at the chain again.
  • If a foodborne illness outbreak is linked to multiple locations of a restaurant, consumers get even tougher. A whopping 37.5% would avoid eating at the entire chain for more than six months. There’s more disturbing news: 31.7% of the respondents said they’d never eat at that chain again.

Food safety incidents don’t have to be large scale to be significant and get into the consumer eye. They happen every day, in small scale, for many foodservice operations. Think about how the following incidents could impact food safety in your organization:

  • A power outage knocks out refrigeration for a single location for 12 hours
  • A boil water advisory is issued for a large city
  • A fire extinguisher is discharged in a kitchen to put out a small fire
  • A hurricane brings widespread flooding to a metropolitan area
  • A child whose parent asks about peanut allergies is served a food containing peanuts
  • A child becomes ill in a restaurant and vomits
  • A kitchen employee is diagnosed with hepatitis A and continues to work without disclosing the illness
  • A location is closed by the health department for a pest infestation
  • Several locations were supplied with a food item involved in a major recall for contamination

Each of these incidents is related to food safety. Would your employees, from the top down, know what actions to take in each specific situation? Most senior or executive-level C-suite personnel might know what to do, but that type of training often never makes it down to the operator level. When an incident does happen, it leaves location level management and employees scrambling to figure out what to do; often, the steps they take are incorrect, and can even exacerbate the situation.

What’s Trending in Food Safety Incidents
Over the last 24 months, we’ve helped many major brands in resolving crisis situations. The top five types of crisis incidents we’ve assisted with include:
– Potential Hepatitis A exposure
– Potential Norovirus outbreaks/exposure
– Health department closure
– Power outages
– Boil water advisory

Just as organizations prepare for other crises—fire drills, food shortages, staffing problems, active shooters—having crisis plans for food safety incidents can help an organization’s players know what to do when a food safety incident occurs. This goes beyond risk mitigation to actually knowing what steps to take when specific types of crisis happen. Proper planning for crisis management includes:

  • Identifying the most likely crisis situations and developing a plan of action for each of them.
  • Identifying who all the key players are going to be in the management of the crises, from C-suite to public relations to individual location responsibilities, and communicating that to all team members
  • Outlining all the steps to be taken in a crisis
  • Building familiarity with a defined plan for operators of an individual location
  • Presenting an opportunity to practice the plan before a crisis occurs (training)
  • Crisis management doesn’t end with the crisis; following any crisis, key stakeholders should review the crisis management plan for that incident to determine if updates or changes are needed

What to Look for in a Crisis Management Partner

Crisis management isn’t something to go alone if you don’t have internal expertise on your team. Crisis management goes beyond public relations—it should include training and step-by-step processes for each specific type of crisis. So what should you look for in a food safety crisis management partner?

  • A partner who has food safety knowledge and practical experience in dealing with crisis
  • A partner who has familiarity with the different types of crises you outline as critical for your organization
  • A partner who engages team members and can help you conduct training from the top down

Why Now?

Crisis management should be part of every organization’s plan already, but if it’s not, there are some key reasons to act now. A number of current events are having a substantial impact on the foodservice community, increasing the need for food safety crisis management plans.

  • Hepatitis A outbreaks. States including California, Michigan, Kentucky and Indiana have had a significant increase in the number of hepatitis A cases reported. While this problem doesn’t start in the foodservice community, it does impact it—because as communities see higher cases, the chances of a food handler coming into contact with an ill person and contracting hepatitis A increase. Hepatitis A can be easily spread through food, so it’s critical that foodservice operations have a crisis management plan to deal with exposure incidents.
  • Norovirus. Norovirus-related outbreaks and foodservice operation closures—and the media exposure that goes along with them—have been on the rise for the last several years. Norovirus can create problems for operations in a number of ways, from employees working while sick, to customers getting sick in the establishment, to foods being contaminated with norovirus. Knowing how to respond to norovirus incidents is critically important, as norovirus outbreaks can lead to location closures, costly disinfection costs, unwanted publicity, lawsuits, and more.
  • Increasing turnover. With unemployment rates at record lows, foodservice operations are facing an employment crisis, unable to hire enough workers. This can increase the opportunity for food safety incidents as routine tasks and processes may be “short cut” during an employment shortage.
  • Delivery. The skyrocketing demand for delivery has led chains to quickly put together delivery plans. Crisis management should be addressed as part of any delivery plan, as there are any number of variables which could lead to potential incidents in delivery.

Don’t wait until a food safety incident occurs to figure out your crisis management plan. Start work today to ensure that when a food safety crisis occurs, your team and your brand can weather the storm.

Randy Fields, Repositrak
FST Soapbox

How to Button Up Your Supply Chain

By Randy Fields
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Randy Fields, Repositrak

Donald Bowersox, a long-time business professor at Michigan State University and one of the progenitors of modern supply chain management, once said, “The job of supply chain is clearly a senior management challenge, and it’s one that sits right alongside the other C-level jobs in the corporation. We may call it something different going forward, but basically it will remain the stewardship of moving products from the material origin points all the way through the process of conversion to the end consumers efficiently, effectively, and relevantly. That challenge is a big one and will continue to be for a long time. So I don’t see a next organizational evolution. Instead, I see the supply chain manager becoming more deeply involved in the corporate strategic initiatives and being part of the C-team management.”

Applying this approach to food safety in the supply chain has become more critical during the last few years as a result of regulatory, market and consumer pressures. At the start of this century, only 15 years ago, the food safety director rarely, if ever, interacted with the CEO. Many retailers didn’t even have such a position, or it was combined with quality control or loss prevention.

Now, not only does the top food safety manager have the ear of the CEO, he or she is engaged with all senior executives. Part of this is the result of the Food Safety Modernization Act, which holds those officers personally liable for a wide variety of preventable incidents. Likely bigger causes for the shift are the changing market and the changing consumer, which both relate directly to the company’s brand reputation. And in the food business, everything starts and stops with the supply chain.

Why? Because the supply chain is ground zero for the failures that are responsible for causing food safety problems. And the supply chain is where food safety problems are prevented. It is the choke point or series of choke points that allow or prevent spoiled and tainted product from getting to the consumer. It is also the process by which that unsaleable product is reclaimed so as to ensure it never enters the marketplace.

It is critical for the food safety manager to work closely with the merchandisers and the store operations teams, as they have the relationships with suppliers and work to ensure that standards for everything from ingredients to production are met with every shipment. But it’s even more critical for those professionals to work closely with the supply chain team to determine weak links in the system and address those pressure points before they cause real damage. Without food safety-supply chain collaboration, the risks to a company’s reputation multiply. With it, the likelihood of a food safety incident reaching consumers diminishes tremendously.

It’s becoming clearer every day—if you don’t button up your supply chain, somebody else, namely the government or the consumer, will and the results won’t be pleasant.